Tax and your Defined Benefit
Please note:
CSC does not 'tax' your benefits. We are required to withhold amounts in accordance with Australian Taxation Office (ATO) guidelines. We do not have access to ATO-held information about your super interests with other funds. Any amounts listed on our Benefit Estimates do not take your personal financial circumstances into account, including current or previous super income which may lead to additional tax being imposed by the ATO after it is paid. You should seek independent tax advice from an accountant or appropriately qualified tax professional—we cannot provide individual tax advice.
Fund rules differ
Select your fund to view the details
- CSS
- DFRDB
- MilitarySuper
- PSS
How super is taxed
Generally, super may be taxed when:
Contributions are paid into a fund
Investment earnings are attributed to a benefit
Benefits are paid from a fund
If you are a high income earner or have exceeded a contributions cap, you may have other taxes to pay.
For more information about the tax implications of exceeding your contributions cap, visit the ATO.
Tax offset age 60 and over
The untaxed component of Lucy’s fortnightly pension is $1,600. The 10% offset of $1,600 is $160. Deduct the $160 offset from the marginal tax rate applicable to Lucy’s pension. If Lucy’s fortnightly pension tax is $230, her new tax liability is $70.
Marginal tax rates and your taxable income
Marginal tax is the rate of tax for an additional dollar of income. Different rates of tax (tax brackets) apply based on income thresholds. Your whole income is not taxed at the next rate, only the amount that is over the threshold is taxed at that rate. Rates are set by the ATO.
We use marginal tax rates to calculate your withholding amount. Pay as you go (PAYG) withholding is the withholding of tax from payment instalments or an individual—in anticipation of their end of financial year tax liability. We withhold tax at rates set by the ATO.
Contribution phase
Tax treatment of your super while you are in your contribution phase.
Investment earnings
Investment earnings are taxed at concessional rates up to 15% as CSC is a complying super fund (i.e. an approved super fund that qualifies for concessional tax treatment). The effective rate of tax incurred may be less than 15% due to the concessional tax treatment afforded to long-term capital gains and franking credits.
Supplying your tax file number (TFN)
Under the Superannuation Industry (Supervision) Act 1993, we are authorised to collect, use and disclose your TFN. We may disclose your TFN to another super provider when we transfer your benefits—unless you tell us in writing that your TFN not be disclosed to any other super provider.
Declining to quote your TFN to us is not an offence, however supplying your TFN will have the following advantages:
- we can accept all permitted types of contributions to your account/s;
- you will pay the amount of tax appropriate for your income (we will not withhold more each fortnight—but if we do withhold too much, you will get it back after submitting your tax return); and
- it will make it much easier to find different super accounts in your name so that you receive all your super benefits when you retire.
The purposes of supplying your TFN and the consequences of choosing not to supply your TFN may change in line with future legislative changes.
We intend to use your TFN only for these approved legislative purposes:
- advising the ATO for the purposes of validating your TFN, tax and super co-contributions;
- supplying your TFN to another fund if your benefit is transferred or rolled over (unless you tell us in writing that this not be done); and
- searching for and consolidating your benefits in your fund.
Temporary residents and lost members
We are obligated to pay the unclaimed super of a non-resident to the Commissioner of Taxation under Division 3 of Part 3A of the Superannuation (Unclaimed Money and Lost Members) Act 1999.
We rely on an ASIC exemption to not notify or provide an exit statement to a former temporary resident.
Former temporary residents can apply to the Commissioner of Taxation for unclaimed super under Division 4 of Part 3A of that Act.